@head1 Page ## John Zube, 7 Oxley St., Berrima, NSW 2577 27 October 1989 John Gibbons, P.O. Box 3178 GG, GPO Melbourne 3001 Dear John, thanks for your phone call yesterday. It made my day. I am happy to hear about any new monetary experiment or plans of them. Thanks also for your permission to microfilm them non-exclusively and on a revocable basis. The latter would establish a small credit for you with me in form of microfiche. Towards that credit some and some printed matter are enclosed. I would also love to get Richard King's 100 pp manuscript on sovereignty - and the one on the revival of the Celtic spirit for liberty - for my reading pleasure and for microfilming. You might pass on a copy of my latest catalog, PP 868, to him. Much as I do like to see people engaged in monetary freedom activities - and even in a monetary revolution, when the time for it has come, through a sufficient preparation either of public opinion or of an enlightened minority of activists - I would not want anyone rushing in unaware or unprepared into such experiments, risking a high fine or even imprisonment, imagining that doing the morally and economically right thing is accomapanied by immunity from prosecution. You were wise in getting hold of at least one legal opinion already. Even if a loophole has been found. This does not mean that it will not be closed, rather suddenly, even retroactively. When not many votes may be lost through another interventionism or a prejudice against such experiments can be appealed to, then the buraucrats tend rather towards prohibition and prosecution. And some monopoly holders like the Reserve Bank and the Post Office are rather jealous of their legal privileges. Moreover, among unionists there is a prejudice, established over centuries, in favour of being paid exclusively in "coins of the realm", a prejudice usually backed by judges and special legislation. The population and even most economists are so far not yet emancipated economically, in their views and pactices and they are usually least informed and most prejudiced and submissive on monetary matters. Banking has been only slightly deregulated so far, not at all with regard to note issue banking. Either the Australian legislation or merely the case law ( perhaps both ) is now on line. A search and print out of all relevant clauses & cases & decisions would be helpful but it might cost a few hundred dollars. If you have contacts with Melbourne law students then you might get such a print-out for free through them - and I would like an excellent photocopy for microfilming. It would also make an excellent thesis for a dissertation. I have recently filmed a few classical U.S. cases. ---------------------------------------------------------------------------------------- BANKING ACT, 1959-1973 ( The 1979 reprint was o.o. stock at the Commonwealth Bookshop a few weeks back. ) : "An Act to regulate Banking, to make provision for the Protection of the Currency and the Public Credit of the Commonwealth, and for other purposes." ( J.Z. : With some ignorance, prejudice and ill will this can be very widely interpreted. ) 5. (1)...'bank' means a body corporate authorized under Part II to carry on banking business in Australia... Part II - Provisions Relating to the Carrying on of Banking Business, Division 1 - Authority to carry on Banking Business 7. Subject to this Act, a person other than a body corporate shall not carry on any banking business in Austalia. Penalty : Two hundred dollars for each day during which the contravention continues. ( J.Z.: Again, "any banking business can be widely interpreted for prohibitory purposes. ) 8. Subject to this Act, a body corporate shall not carry on any banking business in Australia unless the body corporate is in possession of an authority under the next succeeding section to carry on banking business. Penalty : Ten thousand dollars for each day during which the contravention continues. ( J.Z.: Imagine having to serve time to cut out such fines! ) 9. ....(2) A body corporate....may apply in writing to the Treasurer for authority accordingly. (3) Where such an application is made, the Governor-General may grant to that body corporate an authority, in writing, to carry on banking business in Australia. (4) An authority under this section may be granted subject to such conditions as are specified in the authority. (5) Where an authority under this section is subject to conditions, the Governor-General may, from time to time, vary or revoke any of those conditions or impose additional contidions. (6) Where an authority under this section is subject to conditions, the body corporate to which the authority is granted shall comply with those conditions. Penalty two thousand dollars for each day during which the contravention continues. ( J.Z.: These are all very big MAYs and amount to a lot of discretion for people with vested interest and long and deeply established prejudices. ) Part IV - Gold. ( J.Z.: this contains reserved powers for the severe restriction on gold ownership, trading and export. That section, with penalties of up to two thousand dollars and imprisonment for up to 5 years, is largely repealed now, I believe. But I am not sure. May be, as before, it is just not fully applied.) Part V - Interest Rates. 50. (1) The Reserve Bank may, with the approval of the Treasurer, make regulations - (a) making provision for or in relation to the control of rates of interest payable to or by banks, or to or by other persons in the course of any banking business carried on by them; (b) making provision for or in relation to the control of rates of discount chargeable by banks, or by other persons in the course of any banking business carried on by them; .... (2) (b) if the offence is prosecuted upon indictment - by a fine not exceeding Ten thousand dollars or imprisonment for a term not exceeding five years. (64) A trading bank shall settle, by means of cheques drawn on and paid into the Reserve Bank, the balances arising, between itself and any other trading bank, out of any customary general clearance effected in a capital city in Australia. ( Monopoly for last resort clearing. J.Z.) (66) Except with the consent in writing of the Treasurer, a person or body of persons, not being a bank, shall not assume or use, in relation to the business, or any part of the business, carried on by that person or body, the word 'bank', 'banker' or 'banking' or any word of a like import.... ( J.Z. A better word for bank has long been missing - but if anyone came up with it - his efforts would be outlawed, too.) ---------------------------------------------------------------------------------------- RESERVE BANK, No. 4 of 1959, An Act relating to the Reserve Bank of Australia and for other purposes. ( I do not have a later version on hand, only some 1985 regulations on secrecy & balance sheet reports. J.Z.) 5.- (1) In this Act...."bank: means a person carrying on the business of banking... 8. The Bank has such powers as are necessary for the purposes of this Act and, in particular, and in addition to any other powers conferred on it by this Act, has power - (a) to receive money on deposti; (b) to borrow money; (c) to lend money ; (d) to buy, sell, discount and re-discount bills of exchange, promissory notes and treasury bills; (e) to buy and sell securities issued by the Commonwealth &other securities; (f) to buy, sell and otherwise deal in foreign currency, specie, gold and other precious metals; (g) to establish credits and give guarantees; (h) to issue bills and drafts and effect transfers of money; (i) to underwrite loans; and (j) to do anything incidental to any of its powers. .... ( J.Z.: Sounds all innocuous, until you ask : Why should no one else be free to engage in such a business? ) (2) It is the duty of the Board, within the limits of its powers, to ensure that the monetary and banking policy of the Bank is directed to the greatest advantage of the people of Australia and that the powers of the Bank under this Act, the BANKING ACT 1959 and the regulations under that Act are exercised in such a manner as, in the opinion of the Board, will best contribute to - (a) the stability of the currency of Australia; (b) the maintenance of full employment in Australia; and (c) the economic prosperity and welfare of the people of Australia. ( J.Z.: Its monopoly aspect is hidden here and that central banking can achieve these aims, rather than block them, is assumed. Not your opinion is decisive or that of your lawyer or that of any economist, but that of the board members. And boards and committees tend to be unthinking beasties. Point 26 is a bit more explicit.) 26. The Reserve Bank - (a) is the central bank of Australia; (b) shall carry on business as a central bank; and (c) subject to this Act and to the BANKING ACT 1959, shall not carry on business otherwise than as a central bank. Part V. - The Note Issue. Division 1 - General. 32. In this Part, unless the contrary intention appears - "Australian note" means a note issued in pursuance of the AUSTRALIAN NOTES ACT 1910-1914, in pursuance of Part VII. of the COMMONWEALTH BANK ACT 1911-1943, in pursuance of Part VI of the COMMONWEALTH BANK ACT 1945-1953 or in pursuance of this Part... ( J.Z.: Sometimes the real meaning of the law is buried in background legislation and decisions. Another quaint custom of legislators is to assemble single to a few paragraphs of amendments in whole booklets of diverse amendments and not to reprint the lot in coherent segments. More jobs for the boys, I presume - and much more expenses if one wants to get the legislation in a complete set. Even at the Government Bookshop it took quite a while for staff members to find some of the amendments and sometimes they turned out to be quite insignificant, not worth the cost for the booklet. And that in times of xeroxing some legislation is simply out of print is ridiculous - and one more reason for resistance against oppressive laws.) 33. - (1) For the purposes of this Part, there shall be a Note Issue Department of the Bank. (2) The Bank shall keep the accounts and transactions of the Note Issue Department separate and distinct from the other accounts and transactions of the Bank.... 36. Australian notes a a legal tender throughout Australia. ... 38. The funds of the Note Issue Department ( in so far as they are not held by the Reserve Bank or held or invested in land, plant, equipment, stores and the like ) shall be held or invested (a) in gold; (b) on deposit with a bank; or (c) in securities of the Government of the United Kingdom or of the Commonwealth or a State. ( J.Z. : In an age of government "insecurities"! ) 43. The Bank shall not issue bills or notes ( other than Australian notes ) intended for circulation as money. 44. - (1) A person shall not issue a bill or note for the payment of money payable to bearer on demand and intended for circulation. Penalty : Five hundred pounds. ( J.Z. That seems to leave other options open, however, the rulings on banks and banking, any banks and any banking business, amount to general prohibitory rulings. ) (2) A State stall not issue a bill or note for the payment of money payable to bearer on demand and intended for circulation. Division 2. - Offences relating to Australian Notes. 46. In this Division - ... "form of an Australian note" means any form of an Australian note, not being a genuine Australian note, intended or likely to pass for an Australian note, and includes a part of such a form. ( J.Z. : The other clauses deal more obviously with forgery only. But this one COULD be used to outlaw notes which some MORONS might mistake for Australian notes.) ---------------------------------------------------------------------------------------- BANKING ( FOREIGN EXCHANGE ) REGULATIONS, in force under the Banking Act 1959, Reprinted as at 31 Jan. 1983, seems to deal only with foreign currencies, foreign trades and foreign ownerships and their transfers, but the term of "foreign currency" and its ever varying regulations and prohibitions, could be applied, with some ill will, to any alternative to the Reserve Bank's "Australian Notes". J.Z.) ---------------------------------------------------------------------------------------- CURRENCY ACT 1965, Incorporating all amendments by legislation made to 30 June 1980. ( J.Z. A prior act: Currency, No. 67 of 1963, was more explicit, by stating : "An Act relating to Currency, Coinage and Legal Tender. ) 8. (1) The monetary unit, or unit of currency, of Australia is the dollar. (2) The denominations of money in the currency of Australia are the dollar and the cent. (3) A cent is one-hundredth part of a dollar. ( J.Z.: The very cheek of thus "defining" a value standard! Well, paper is patient and its use is rather "elastic". It was Mises, I believe, who said, something like this: Government is the only institution that, in attempting to provide values, takes some as scarce and valuable commodities as paper and ink and turns them into valueless trash. ) 9. Transactions to be in Australian currency : (1) Subject to this section, every sale, every bill of exchange or promissory note, every security for money, and every other contract, agreement, deed, instrument, transaction, dealing, matter or thing relating to money ( J.Z. : There is still no agreement on what constitutes money and economically and morally correct views have little value in court! ), or involving the payment of, or a liability to pay, money, that is made, executed, entered into or done, shall, unless iut is made, executed, entered into or done according to the currency of some country other than Australia ( J.Z.: And here the extensive and ever-changing foreign exchange restrictions, e.g. under the Banking Act and regulations, come in!), be made, executed, entered into or done according to the currency of Australia provided for by this Act. 11. (1) Every payment that is made ( J.Z.: Note that here monetary payment is not required and that barter arrangements etc. are already considered as taxable payments. ) shall, unless it is made according to the currency of some country other than Australia, be made according to the currency of Australia provided for by this Act. ( J.Z.: The short version for all such legal balderdash is : Australian Notes are in Australia a forced and exclusive currency. ) 22. Prohibition of other than official coins : A persons shall not make or issue a piece of gold, silver, copper, nickel, bronze or of any other material, whether metal or otherwise, of any value, other than a coin made or issued under the repealed Acts or under this Act or a British coin as defined by the repealed Acts, as a token for money or as purporting that the holder is entitled to demand any value denoted on it. Penalty : One hundred dollars. ( J.Z. Note that a money value or redemptions does not have to be promised in it. My own fiche certificates might already fall under this prohibition. If no other penalties could be invoked, as low a fine could almost make it worth the attempt of a private token coin issue. And even cancelled issues could possibly, if not all are confiscated, as happend, bring much more in sales to collectors. - However, much of the monetary legislation is more or less hidden in unsuspected other legislation. In Germany e.g. in the 1867 "Gewerbeordnung" or industrial law code. And lawyers and judges who really understand e.g. the morality or immorality, the economics and anti-economics of legal tender legislation and of value standards and of "threats" to them are EXTREMENLY rare, so that almost any official misjudgment of such questions is not only POSSIBLE but LIKELY. I must admit, though, that the outlawry of alternatives does not appear to be as severe as it is in Germany. ) ---------------------------------------------------------------------------------------- CRIMES (CURRENCY) ACT 1981. ( J.Z. : According to the Government Bookshop, supposed to be unchanged in 1989. It appears to be directed only against forgery or too close imitations to the government thing. However, section 3 in Part I, Preliminary, seems to apply even to genuine notes or coins of ANY country, EVEN if that country is no longer in existence, I presume, that is to mean : not continued as a State.) 3. For the purposes of this Act, a coin or paper money shall be taken to be a genuine coin or genuine paper money if it is, or has been, a current coin or current paper money in any country ( whether or not the country concerned is still in existence). ( J.Z.: Thus a photocopy or microfilm reproduction of a currency example, long defunct, of a defunct government, reproduced for scholarly purposes only, because it was of some monetary interest, could, according to this clause, lead to prosecution, it being counted as a forgery! ) 5. Extra-territorial operation of Act. This Act extends, except so far as the contrary intention appears - (a) to acts, matters and things outside Australia, whether or not in a foreign country; and (b) to all persons, irrespective of their nationality or citizenship. ( J.Z.: All that runs under the notion of legislation based on consent! It would apply even to a Martian! - As far as genuine forgery is involved, of proprietary issues, I would agree with prohibition and indemnification claims etc. Generally, no awareness is shown that exclusive, centralized and forced currencies do invite and facilitate forgeries and that they would be very difficult and unlikely under monetary freedom. When I enquired about Australian Store Currencies, no forgery of them had occurred as yet. Most of the certificates streamed back within days to the issuer and large scale forgery would have been discovered fast. ) ======================================================================================== So much from my still all too incomplete collection of Australian legislation. As I said above, a complete search should be made for all laws, regulations, rules and juridical decisions. Naturally, it would still not safeguard an honest issuer of alternative exchange media and value standards against FUTURE laws, regulations, rules and juridical decisions, which, under government pressure, can sometimes be passed within DAYS and, all too frequenly, are applied even retroactively by unscrupulous politicians. I am involved in compiling an alphabetized handbook on free banking terms and options, in English and German. Some still very incomplete complilations of this kind have already been filmed and stacks of other notes remain to be added. I could use help in this project - if you are that way inclined. Presently both my computer systems are operative. Can you read German? Can you type? For a very small scale beginning towards monetary freedom, ca. a month or two before each x-mas, I thought of an association of shopkeepers who would be in the habit of paying a x-mas bonus to their members. This time they might do this via a common issue gift voucher system, each shop owner "buying" the common gift certificates with his own, or perhaps operated by the members just declaring their readiness to mutually accept, at least up to a certain amount. That would familiarize a number of them with the sound issue and reflux technique required. Ad hoc inventions of it usually led to many mistakes. It would provide them with some advantages immediately and would be capable of expansion, by numbers and times. However, I have yet contacted any of the retail trader associations on this or other such projects nor do I know how to interest shop keepers in such proposals. There is so much that is unpublished or underpublished in this sphere and I have long ago given up attempts to get it into print. And so far only very few read microfiche - no matter how valuable ideas may be "buried" in them. An age of "information revolution"? Most readers just can't be bothered. I laid aside for you the following and will include, gradually, up to a reasonable postal rate charge, the following : PP 9-11, 586/7 ( Shop currency ), 641, 760-765, 868 2x ( once for Richard King ), all on fiche, ( Over days and weeks they are sensitive to light exposure. To keep them in the dark - except while they attempt to further enlighten you. ) Coversheets of PP 904-6 ( readied for filming, not yet filmed ). Discussion Paper No. 7, Lit list 84/85 of Research Centre. ( Much expanded now, see PP 868.) Bth 29.9.57 on Economic & Human Rights Aspects - on of the few of his shorter papers that I translated and one of te few readily on hand. Bth, 21.3.33, A Programme for the Immediate Abolition of Unemployment. ( Some of his later proposals were better, I believe. Research Centre for Monetary & Financial Freedom, , first leaflet, Nettlau : Panarchy, MFNL 1-4,. Greene : Mutual Banking, in print, PP 11, 19 B & C in print. By my count, printed matter included, which costs, alas, much more to mail, this comes to $ 28 fiche-dollar credits. Yes, I do hope to see a day, when there are at least 5,000 to 50,000 active microfichers in the world, when, in consequence, fiche, BETWEEN them, could be used, to some extent an acceptable exchange medium, realizing what Kinney/Hopman call : "money IS information". The Esperantists once used a special currency for their international literature exchanges. For monetary freedom or other acceptable libertarian material supplied to me, filling one microfiche, 98 pages to 700 pp, depending on sizes, I give credit up to 50 microfiche. In case you do not establish such a credit with me, then would expect you to either pay me - once you can afford this, or return the fiche, newsletters and booklets after a while. I have only a few copies left. PIOT ( Panarchy In Our Times - monetary freedom being just one of the many individual secessionist and individual sovereignty steps required towards it ), John Zube.